Environmental conditions for Goldfields nickel projects welcomed

29/10/96

Resources Development Minister Colin Barnett has welcomed the announcement that environmental conditions have been set for three nickel projects in the Goldfields.

Environment Minister Peter Foss has given approval, subject to strict environmental conditions being met, for Resolute Samantha's Bulong project, Centaur Mining's Cawse lateritic nickel mining project and Dominion Mining's Yakabindie sulphide ore project near Mt Keith.

Mr Barnett said the approval of environmental conditions was an important step for the three projects. Resolute Samantha had given its final approval for the Bulong project, while Centaur Mining and Dominion Mining were yet to give final board approvals for their two projects.

"It is planned that these projects will give a multi-million dollar boost to the economy of the Goldfields in terms of construction and permanent employment, and a boost to Western Australia's resources industry," he said.

"Their total capital cost is estimated at $820 million; between them they will employ 850 people in the construction phase and once completed, the three projects will provide permanent jobs for 600 people."

Centaur Mining has announced that it has raised the necessary capital for Cawse but is yet to give the project board approval. Dominion Mining has indicated that initial mining will focus on Serp Hill on part of its Yakabindie leases.

"The recently opened Goldfields Gas Pipeline has had a beneficial effect on all three projects," Mr Barnett said.

"Centaur Mining proposes to construct a lateral off the main pipeline to supply gas to the Cawse mine for power. In addition, WMC Resources will sell Centaur some 200,000 tonnes per annum of sulphuric acid from its recently-constructed acid plant at Kalgoorlie to use in the processing of lateritic ore into nickel metal.

"Bulong will also benefit by buying between 200,000 and 250,000 tonnes of sulphuric acid from WMC Resources for nickel processing.

"Finally, the proximity of the pipeline to the Yakabindie deposit near Mt Keith could see the mine benefit from energy cost reductions associated with gas from the pipeline."

Media contact: Justine Whittome (09) 222 9699